Bank of Canada Qualifying Rate Decrease Monday

With the recent drop in bond prices and banks lowering their posted rates on mortgages as of Monday May 30th the Bank of Canada Qualifying Rate will decrease to 5.59%.

In accordance with the new CMHC mortgage changes, at 12:01 AM EST May 30th, the benchmark qualifying rate for insured high-ratio mortgages will be 5.59.%.

Clients will now have to qualify based on the 5.59% interest rate if they want to choose a variable or a 1- to 4-year fixed term if you’re putting down less than 20%.

CMHC defines the benchmark rate as the Chartered Bank — Conventional Mortgage 5-year rate that is the most recent interest rate published by the Bank of Canada in the series V121764 as of 12:01 AM (Eastern Time) each Monday.

If you have any questions, please feel free to contact Scott Dawson by any of the methods below: